Target Information

Gimv has acquired United Dutch Breweries (UDB), along with UDB’s management, from the Dutch investment firm Egeria. This acquisition marks Gimv’s largest investment in the Netherlands to date. UDB, located in Breda, Netherlands, is recognized as an independent beer group that owns several notable heritage brands, including Oranjeboom, 3 Horses, Royal Dutch, and Atlas. Additionally, it offers a range of specialty beers, such as non-alcoholic options, stouts, and dark malt beverages.

Founded in 1968 through the merger of two of Holland's oldest breweries, UDB has deep historical roots, including ‘De Drie Hoefijzers’ from Breda, with origins tracing back to 1538, and ‘De Oranjeboom’ from Rotterdam, established in 1671. UDB became an independent entity again in 2008 after being carved out from AB InBev. The company's primary strategy revolves around exporting affordable premium branded beers, ensuring that high-quality European products reach consumers worldwide, with sales spread across more than 100 countries.

Industry Overview in the Netherlands

The beer industry in the Netherlands has experienced both challenges and opportunities in recent years. Although the overall market has seen a decline, particularly in traditional lager sales, there’s been a significant shift towards premium and craft beer segments. This transformation reflects changing consumer preferences, where quality and variety are increasingly prioritized over volume.

The craft beer movement has particularly impacted the market dynamics, with a growing number of microbreweries entering the scene. These microbreweries are challenging larger players by offering unique and locally inspired products that cater to niche markets. As a result, established brands are also adapting to this landscape by innovating their offerings and exploring new distribution channels to retain market share.

In the context of exports, the Netherlands stands out as a key player in the international beer market. Dutch breweries are successfully capitalizing on their rich brewing heritage and quality production standards. Notably, the focus on emerging markets in Asia-Pacific and Africa presents a significant opportunity for both established and up-and-coming brands, as these regions are increasingly developing a taste for European-style beers.

Furthermore, sustainability and health concerns are shaping consumer choices, pushing breweries towards producing lower-alcohol and non-alcoholic beverages. The growing awareness around health and wellness has led to an uptick in demand for these kinds of beers, providing opportunities for brands like UDB to innovate and capture this segment.

Rationale Behind the Deal

The acquisition of United Dutch Breweries aligns with Gimv’s strategy to invest in companies with strong growth potential. UDB's entrepreneurial management team and its unique business model focused on exports further enhance its attractiveness as an investment. Gimv aims to leverage UDB’s established routes-to-market and expertise in emerging regions to accelerate growth, particularly in Asia and Africa.

Moreover, the transaction aims to strengthen UDB’s brand portfolio while capitalizing on the increasing demand for premium and specialty beers globally. By partnering with UDB’s management, Gimv is positioned to provide essential support for strategic initiatives that will foster innovation and enhance market penetration.

Information about the Investor

Gimv is a renowned investment company with a robust history of successfully investing in the food and beverage sector. This acquisition marks a significant milestone in its investment journey in the Netherlands, reflecting its commitment to expanding its presence in the European market. Gimv has a proven track record, having previously invested in various food companies, including De Groot Fresh Group, Vandemoortele, Greenyard Foods, and Poco Loco.

With an established expertise in identifying high-potential companies, Gimv focuses on long-term value creation and strategic growth. Its investment approach is characterized by a partnership model that engages alongside management teams to build sustainable growth and foster innovation in the businesses it invests in.

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The acquisition of United Dutch Breweries by Gimv appears to be a strategic investment with great potential for growth. UDB has demonstrated resilience in the declining European beer market, particularly evident through its focus on emerging and frontier markets. This positions the company well for future expansion, especially in regions where demand for premium beers continues to rise.

Furthermore, UDB’s innovative “brewer without a brewery” model provides flexibility and reduces capital expenditure, allowing for an agile response to market demands. This unique operational strategy, coupled with partnerships with reputable brewery partners, enhances UDB's ability to scale efficiently and effectively.

The partnership with Gimv will likely provide UDB with the necessary resources and strategic guidance to further penetrate high-growth markets such as Asia and Africa. This potential for geographical diversification is crucial as UDB seeks to build on its already substantial global client base and capture new market opportunities.

In summary, this deal points towards a promising future for United Dutch Breweries under Gimv’s investment, particularly given their shared vision for growth and expansion in emerging markets. The alignment of UDB's capabilities with Gimv's investment philosophy suggests that this could be a mutually beneficial partnership that catalyzes UDB’s growth trajectory in the years to come.

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